Paraguay is one of the Latin American countries with the highest bitcoin mining activity.
Paraguay’s National Electricity Administration (ANDE) reported Thursday (27) that the country’s eastern Alto Paraná department sees a boom in bitcoin mining farms that could “endanger” the landlocked South American nation’s electrical stability .
According to engineer Miguel Ángel Báez, technical director of “ANDE”, electricity consumption in the region is increasing due to Bitcoin miners, who often connect to the network secretly to avoid paying for the service.
According to him, the authorities have tried to fight “clandestine” links with operations and inspections in Ciudad del Este, on the border with Brazil.
“But as they break one bond, two others bond,” he explained. Cryptocurrency miners consume large amounts of energy and are “significantly” spread throughout the department of Alto Paraná.
Báez points out that a single bitcoin mining operation can absorb “all the energy” of a generator intended for an apartment complex.
Paraguay is one of the Latin American countries with the most mining activity for Bitcoin and other cryptocurrencies.
According to the University of Cambridge, it accounts for 0.15 percent of the global hashrate of the Bitcoin network.
The activity is mainly favored by hydropower plants.
It should be noted that Paraguay is rich in rivers and tributaries that produce electricity.
Bitcoin mining has boomed in recent years and has reached the point where large companies dedicated to the industry are located in Paraguay, such as Braiins.
This allowed the drafting of a law at the legislative level to create a legal framework for mining activities and the cryptocurrency ecosystem.
However, Mario Abdo Benítez’s government vetoed the bill because mining was “irrelevant” and did not create jobs.
